China’s new energy vehicle (NEV) industry began 2025 with record-breaking momentum, as production and sales surged nearly 50% year-on-year in the first quarter, according to data released Friday by the China Association of Automobile Manufacturers (CAAM).
Manufacturers produced 3.18 million NEVs during the January-March period, a 50.4% increase from 2024, while sales rose 47.1% to 3.08 million units. Notably, NEVs accounted for over 41% of all vehicle sales in the Chinese mainland during this period—a milestone underscoring the sector’s accelerating shift toward sustainability.
Analysts attribute the growth to sustained consumer demand, advancements in battery technology, and policy incentives supporting green infrastructure. "These figures reflect China’s dual commitment to industrial innovation and environmental goals," said CAAM spokesperson Li Hui during a briefing in Beijing.
For investors, the NEV boom signals opportunities across supply chains, from raw materials to smart charging networks. Meanwhile, the Taiwan region and other Asian markets are closely monitoring these trends as they adapt to China’s leadership in the global EV race.
As automakers prepare for new model launches ahead of climate-conscious summer travel seasons, industry watchers predict the NEV market share could exceed 50% by year-end—a potential game-changer for Asia’s economic and environmental landscape.
